You don’t need to get an EIN you can use your ssn to prepare the 1099Misc. But peopleget the EIN so they don’t have to give out their ssn. If you paid anyone $600 or more you need to give them a 1099Misc. But not to corporations or for merchandise. You send the IRS a copy of the 1099Misc with the transmittal summary form 1096. These are due to the person by Jan 31 and to the IRS by Jan 31 also. Yes you should have them fill out a W9 before you pay them. You need their ssn.
At the end of the year we can tell you how to prepare the 1099Misc using Quick Employer Forms.
If you are sure you won’t have a Net Profit at the end of the year you don’t have to send in quarterly estimates. For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.
You must make quarterly estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of:
90% of the tax to be shown on your current year’s tax return, or
100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).
